OptionsHouse

Options Trading News

November 8, 2011  Tue 9:51 AM CT

ATVI: SEE CHART GET CHAIN FIND STRATEGIES
Shares of Activision Blizzard jumped to three-year highs this morning, and one large trader is betting that the gains will hold.

The digital game company released its new "Call of Duty: Modern Warfare 3" title to much fanfare today and will announce its earnings results after the bell. ATVI gapped up as high as $14.40 this morning but has since pulled back to $13.87, still up 0.95 percent. The stock has run up from support near $10 in mid-August.

Topping ATVI's unusual option volume so far today is the action in the December 14 puts. More than 5,000 of those contracts have traded against open interest of just 87.

The biggest block of 5,000 puts went for $0.62. That was the bid price, indicating that they were sold.

This put selling is a bet that ATVI stay above $14 at expiration. The trader is also showing a willingness to buy shares if the stock is below that strike price. Some traders sells puts as a way to get long stock. (See our Education section)
Share this article with your friends


Related Stories

ATVI

Traders show confidence in Activision

June 27, 2016

Traders are selling puts in the game developer, which reported bullish results on May 5 and is up 15 percent in the last three months.

OptionsHouse

Premium Services

Education & Strategy

Know thyself before trading

All too often people jump into market without considering some basic guidelines that have as much to do about themselves...

View more education articles »